ZutaCore Raises $100M for AI Data Center Cooling Solutions

ZutaCore has successfully closed a $100 million Series C funding round, signaling a significant boost for its innovative waterless liquid cooling solutions. This capital infusion is earmarked for accelerating the global deployment of its technology, which is designed to address the escalating thermal challenges posed by advanced artificial intelligence processors within data centers. The company's direct-to-chip, two-phase cooling system offers a compelling alternative to traditional air and water-based methods, promising substantial reductions in energy consumption – reportedly halving cooling energy use compared to conventional setups.

The core of ZutaCore's offering, the HyperCool platform, operates as a sealed, closed-loop system. It circulates a dielectric fluid that boils directly at the chip surface to extract heat. This method is particularly advantageous as processor power intensifies, offering a more scalable approach than water-based systems. A key design feature is its inherent safety; the non-conductive fluid and enclosed loop mitigate the risk of electrical shorts from leaks, a long-standing concern for data center operators. The system is engineered to integrate with processors from major manufacturers like Intel Corp., Advanced Micro Devices Inc., and Nvidia Corp.

A primary driver for ZutaCore's technology is the growing environmental and operational scrutiny of water usage in large-scale data centers. Many existing facilities rely on evaporative cooling, which can consume millions of gallons of water annually, a practice facing increasing regulatory pressure and local opposition, especially in arid regions. ZutaCore's waterless approach eliminates this environmental burden entirely. Furthermore, its design allows for retrofitting into existing rack infrastructure, reducing the need for costly, purpose-built facilities.

The company's technology is specifically tailored for the demands of next-generation AI and high-performance computing (HPC) workloads. These processors can exceed 4,000 watts, pushing the limits of air cooling and even conventional single-phase liquid systems. As data center operators build out AI infrastructure, they are encountering rack densities reaching multimegawatt levels, making advanced cooling solutions indispensable. This funding will fuel ZutaCore's global commercialization efforts, bolster research and development for future innovations, and support the deployment of megawatt-class systems.

ZutaCore has already established a presence with over 75 deployments across the Americas, Europe, and Asia. Recent product introductions include the OmniTherm cold plate, enabling two-phase cooling for Nvidia's RTX PRO 6000 Blackwell Server Edition in a standard PCIe form factor. To validate its capabilities at scale, the company has developed a 2-megawatt end-of-row emulation platform at its facility in Israel. Chairman and Chief Executive Erez Freibach highlighted the significance of the funding, stating, "$100 million of funding reflects strong validation from leading global partners and growing demand for our technology. AI is fundamentally reshaping data center infrastructure and traditional approaches are no longer sufficient."

The Series C investment was led by prominent strategic partners, including Mitsubishi Electric Corp., Carrier Ventures, and Samsung Venture Investment Corp., the venture capital arm of Samsung Electronics Co. Ltd., alongside other key investors. Goldman Sachs & Co. served as the exclusive placement agent for the transaction. This substantial backing underscores the market's recognition of the critical need for advanced cooling solutions to support the exponential growth of AI and HPC, positioning ZutaCore as a key player in the evolving digital infrastructure sector.